Section 9 // ●●●●●●●●○● Level: Medium Quick Links: 5: Tokens | 6: NFTs | 7: DeFi | 8: DAOs | Dashboard: Web3 Starter Pack |

<aside> 🥡 KEY TAKEAWAY Decentralized applications developed and running on a decentralized network.

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What are dApps?

dApps is abbreviation of decentralized applications are identical to traditional software programs that run on a blockchain network instead of central servers.

Being decentralized, dApps are not owned, managed and stored by a third-party authority.

How dApps work?

Similar to traditional or Web2 apps, decentralized apps consist of:

• Backend component = smart contract
• Frontend component = communication interface + digital wallet

Decentralized apps use a smart contract on a blockchain network as a backend (just like HTTP and central web servers for Web2 apps)

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The wallet activates the execution of the smart contracts in the backend.

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What are some dApps’ features?

• Open source
• Incentives
• Decentralization
• Protocol compliance

Benefits of dApps

✅ No downtime for dApps - decentralized apps run on peer-to-peer system and they will continue to operate even when some parts of the network architecture are non-functional.

✅ Resistant to censorship - dApps do not allow control of the data and processes to a single entity making it impossible for anyone to prevent users from deploying smart contracts and proceed transactions.